GTA resale condo listings and sales dip to end 2018, but prices rise
GTA condominium sales declined 9.9 per cent to 5,191 in the fourth quarter of 2018, compared to the last quarter of 2017, according to the latest statistics from the Toronto Real Estate Board (TREB).
New condo listings entered into TREB’s MLS System were down by more than sales on a year-over-year basis – dropping 11.2 per cent to 7,272 in Q4 2018 from 8,186 in Q4 2017. his points to tighter market conditions at the end of 2018 compared to late 2017.
Price growth leader
“The condominium apartment segment was the best-performing segment in terms of annual average rates of price growth in 2018,” says TREB President Garry Bhaura. “Condos represent a relatively affordable housing option. With a substantial decrease in listings in 2018, competition between intending buyers remained strong. This supported average price growth well-above the rate of inflation and annual rates of price growth reported for other ground-oriented home types.”
The average price of a condo unit increased by 8.3 per cent to $558,728 in Q4 2018 from $516,086 in Q4 2017. Year-over-year price growth in the city of Toronto, which accounted for 72 per cent of transactions, was slightly higher at 8.9 per cent, resulting in an average price of $598,664.
Lack of supply
“The condominium apartment segment continued to be a key entry point into the GTA home ownership market in 2018,” says Jason Mercer, TREB’s director of market analysis. “Higher mortgage qualification standards meant that many first-time buyers were looking for more affordable housing options. Moving forward, the concern is that a continued lack of listings supply, despite relatively strong new condo completions as of late, will hamper the ability of potential home buyers to meet their housing needs.”
Condo market summary
|Fourth quarter 2018|
|Sales||Average Price||Sales||Average Price|
|City of Toronto||3,728||$598,664||4,188||$549,927|
|Source: Toronto Real Estate Board|